The business of… Tax in the GCC

SAUDI ARABIA

CORPORATE INCOME TAX

Applies to all foreign firms. For a joint venture, the tax liability depends on the foreign company’s share. Capital gains are subject to tax or zakat (religious) money.

The tax rate is 20 percent of tax adjusted profits, and withholding tax rates are between 5 and 20 percent. The income tax rate on taxable net income of foreign shareholders is 20 percent. Only non-Saudi investors are liable for income tax.

SOCIAL INSURANCE TAX

Paid monthly based on the salary plus housing. For Saudi employees, the rate is 20 percent, and 2 percent for non-Saudi employees.